On May 20, analyst Rekt Capital took to Twitter to share insights, suggesting that BTC/USD might need to reach around $20,000 to align with past patterns.
Bitcoin Price Target After Death Cross is Now $22,700
There has been much discussion surrounding the formation of the “death cross” in the Bitcoin chart. This pattern occurs when the 50-period moving average (50MA) falls below the 200-period moving average (200MA).
Historically, such a crossover has led to significant price declines, often marking major market bottoms.
Rekt Capital pointed out, “More often than not, the depth of a $BTC correction before the Death Cross is similar to the retracement depth after the Death Cross.”
While the outcomes in March 2020 and May 2021 defied this trend by reaching the bottom at the death cross itself, January 2022 saw a return to the traditional pattern. Following a 43% decline from its all-time high in November 2021, Bitcoin could potentially drop another 43% to $22,700.
In a tweet, Rekt Capital highlighted, “So since #BTC has crashed -43% since November ’21 prior to the Death Cross…$BTC could retrace a bit more to reach an overall retracement of -43% post-Death Cross, should this historical tendency continue to repeat,” along with a chart demonstrating ROI opportunities during market bottoms.
Recognizing the Bear Market
Another analyst, Filbfilb from Decentrader, acknowledged that Bitcoin is currently in a bear market.
In a market update on May 20, Filbfilb emphasized the importance of reclaiming the one-year moving average (MA) to transition out of the current market situation after losing support in early April.
He stated, “Ultimately we continue to sit in a bear market. This has been the case since price retreated away from the 1yr moving average which we highlighted as a key risk […] when price got rejected off that level.”
Until Bitcoin can reclaim this critical level, the reality is that the market remains in a bearish phase.
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